Question

Businesses get exposed to various types of political and social unrest – and danger -  in countries where they operate.  For examples, Western companies operating  in NW China where the Muslim Uighers are being forcibly deprived of their homes, mosques  and religion; major global financial companies in  Hong Kong;  foreign agricultural and mining companies in Chile exposed to the violent protests against  corruption in their government.

Companies can protect themselves from losses incurred through which means – circle correct response(s) ?

  (1) Purchase OPEC political risk insurance;

  (2) Purchase OPIC political risk insurance;

  (3) Purchase Lloyds of London insurance;

  (4) PESTLE political risk insurance

Answer 1

Option 2. Purchase OPIC political risk insurance

Explanation: Overseas Private Investment Corporation (OPIC) is an agency of the US government which helps firm manage their political risks in overseas markets.